Menu
09/04/2009
Irish Banks Downgraded Despite Budget Proposal
Despite Brian Lenihan's best efforts, Ireland's banks have been downgraded by the credit rating agency, Moody's.
Moody's has cut its ratings on 12 banks operating in Ireland, despite the Finance Minister's budgetary plan to create an asset management agency to buy up risky bank loans.
The credit rating downgrade comes following AIB and Bank of Ireland both dropping over 30%, while Irish Life & Permanent has fallen by 21%.
In yesterday's budget, Brian Lenihan announced the plans for the new National Asset Management Agency, which would purchase the toxic debts from the banks at a significant discount to their €80-90bn book value by issuing Government bonds to banks.
However, Moody's said it had incorporated the expected losses on bank loan portfolios for some time and was concerned that the outlook for commercial property prices was poor and the likelihood of more corporate defaults was high.
Moody's is also concerned at the current erosion in residential loan performance, including the buy-to-let market, which makes up around 25% of the total market.
Ross Abercromby of Moody's said: "We believe that these losses are likely to significantly weaken the capital positions of most Irish banks and building societies over the next two years."
(DW/BMcc)
Moody's has cut its ratings on 12 banks operating in Ireland, despite the Finance Minister's budgetary plan to create an asset management agency to buy up risky bank loans.
The credit rating downgrade comes following AIB and Bank of Ireland both dropping over 30%, while Irish Life & Permanent has fallen by 21%.
In yesterday's budget, Brian Lenihan announced the plans for the new National Asset Management Agency, which would purchase the toxic debts from the banks at a significant discount to their €80-90bn book value by issuing Government bonds to banks.
However, Moody's said it had incorporated the expected losses on bank loan portfolios for some time and was concerned that the outlook for commercial property prices was poor and the likelihood of more corporate defaults was high.
Moody's is also concerned at the current erosion in residential loan performance, including the buy-to-let market, which makes up around 25% of the total market.
Ross Abercromby of Moody's said: "We believe that these losses are likely to significantly weaken the capital positions of most Irish banks and building societies over the next two years."
(DW/BMcc)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
24 November 2010
Irish Credit Rating Downgraded By Agency
Ireland's difficulties seem to worsen by the hour as Standard & Poor's announce they are downgrading the State's international credit rating and placing its banks on "CreditWatch". The news comes just after another international ratings agency, Moody's, announced it would be slashing Ireland's credit rating, following the news of the Irish bailout.
Irish Credit Rating Downgraded By Agency
Ireland's difficulties seem to worsen by the hour as Standard & Poor's announce they are downgrading the State's international credit rating and placing its banks on "CreditWatch". The news comes just after another international ratings agency, Moody's, announced it would be slashing Ireland's credit rating, following the news of the Irish bailout.
31 July 2009
Developer Loses Court Bid To Appoint Examiner
Six companies controlled by the well known property developer Liam Carroll, will not be appointed an examiner, a court has decided.
Developer Loses Court Bid To Appoint Examiner
Six companies controlled by the well known property developer Liam Carroll, will not be appointed an examiner, a court has decided.
07 July 2010
Lenihan Tough On NAMA Bankers' Errors
Banks have been less than clear on certain aspects of the running of the National Asset Management Agency (NAMA). Daíl Minister for Finance Brian Lenihan has now promised action against banks that provide "misleading information" but insisted that NAMA had done its job, and actually paid the banks less than had been envisaged.
Lenihan Tough On NAMA Bankers' Errors
Banks have been less than clear on certain aspects of the running of the National Asset Management Agency (NAMA). Daíl Minister for Finance Brian Lenihan has now promised action against banks that provide "misleading information" but insisted that NAMA had done its job, and actually paid the banks less than had been envisaged.
14 June 2002
Small firms accuse big banks of 'dragging their feet'
The Federation of Small Businesses have expressed disappointment at the Office of Fair Trading's decision to back a call from the banks for a six-month delay in the requirement on the banks to pay interest on business current accounts. The Competition Commission published its report into small business banking as far back as March 14, 2002.
Small firms accuse big banks of 'dragging their feet'
The Federation of Small Businesses have expressed disappointment at the Office of Fair Trading's decision to back a call from the banks for a six-month delay in the requirement on the banks to pay interest on business current accounts. The Competition Commission published its report into small business banking as far back as March 14, 2002.
15 December 2010
Banks Were 'A Bit Optimistic' Says Leak
Ireland's economic outlook from both the banks and Government were under suspicion by the US as early as 2008, as claims emerge that their projections were "a bit optimistic".
Banks Were 'A Bit Optimistic' Says Leak
Ireland's economic outlook from both the banks and Government were under suspicion by the US as early as 2008, as claims emerge that their projections were "a bit optimistic".
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
